Price is what you pay, value is what you get : Warren Buffet

Berkshire Hathaway Inc. is an American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States. Warren Buffet is a CEO and revenue of Berkshire Hathaway is $223 billion USD.

Every quarter and year Berkshire Hathaway releases / publishes their annual report to public. Here is a list of all of its annual reports. Buffets talks about its thought about its investing in all of its annual reports , these are some consolidated ones.

  • At Berkshire, we much prefer owning a non-controlling but substantial portion of awonderful company to owning 100% of a so-so business; It’s better to have a partial interest in the Hope diamond than to own all of a rhinestone (an imitation diamond, used in cheap jewellery and to decorate clothes.).
  • Our flexibility in capital allocation – our willingness to invest large sums passively in non-controlled businesses – gives us a significant advantage over companies that limit themselves to acquisitions they can operate.
  • Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard’s.) I believe the trust’s long-term results from this policy will be superior to those attained by most investors – whether pension funds, institutions or individuals – who employ high-fee managers.
  • Keeps things simple and dont swing on fences , when promised on quick profits respond with quick no.
  • If you don’t feel comfortable making a rough estimate of the asset’s future earnings, just forget it and move on.
  • Forming macro opinions or listening to the macro or market predictions of others is a waste of time. Indeed, it is dangerous because it may blur your vision of the facts that are truly important.
  • A “flash crash” or some other extreme market fluctuation can’t hurt an investor any more than an erratic and mouthy neighbor can hurt my farm investment.
  • When Charlie and I buy stocks – which we think of as small portions of businesses – our analysis is very similar to that which we use in buying entire businesses. We first have to decide whether we can sensibly estimate an earnings range for five years out, or more. If the answer is yes, we will buy the stock (or business) if it sells at a reasonable price in relation to the bottom boundary of our estimate.
  • The goal of the non-professional should not be to pick winners – neither he nor his “helpers” can do that – but should rather be to own a cross-section of businesses that in aggregate are bound to do well.
  • I can’t remember what I paid for that first copy of The Intelligent Investor. Whatever the cost, it would underscore the truth of Ben’s adage: Price is what you pay, value is what you get. Of all the investments I ever made, buying Ben’s book was the best (except for my purchase of two marriage licenses).

Image source : cnbc

Keep Investing , Follow your own instincts before buying stocks / MF’s 😀